Real Estate Investment Trusts raise outlooks on leasing strength

Several real estate investment trusts (REITs) have raised their financial outlooks following strong third-quarter leasing performance across various sectors.

Digital Realty reported record leasing bookings, signing $855 million in annualized rent during the third quarter. The data center landlord attributed this growth to high demand for artificial intelligence infrastructure, which has tightened the supply of ready-to-use capacity. Consequently, the company raised its full-year core funds from operations (FFO) forecast to a range of $8.30 to $8.35 per share.

Federal Realty Investment Trust also increased its 2026 FFO outlook after retail lease renewals delivered 14% cash rent growth. The company, which disclosed a $508 million shopping center acquisition in Alabama, reported net income of $64.2 million for the quarter.

Cousins Properties raised its 2026 FFO outlook driven by strong office leasing in its Sun Belt portfolio. The Atlanta-based firm reported third-quarter net income of $17 million and noted the sale of a 519,000-square-foot office building in Austin, Texas, for $208 million.